TaxTMI 
TaxTMI 
2016 (3) TMI 618
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....ls and took credit of duty paid on wall panels and doors. The primary adjudicating authority held that the impugned goods were neither input nor capital goods and therefore the respondent had deliberately taken credit by indulging in wilful misstatement or suppression of facts. The Commissioner (Appeals) on the other hand held that the impugned goods were eligible to be called inputs and allowed the credit. 2. Revenue in its appeal and during the hearing contended as under : (i) These goods do not fall within the scope of definition of capital goods/inputs. (ii) There was no confusion that as per the definition of inputs and capital goods these goods fell neither in the category of inputs nor capital goods a....
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....2011 treated even furniture and stationery used in an office within the factory as goods used in the factory and as used in relation to the manufacturing business and that this clarification would be germane to explain the scope of the words "in relation to manufacture' for the period prior to 1.3.2011 also. {B}The respondent also filed periodical returns showing the impugned credit. {C}There was no wilful mis-statement /suppression of facts on its part and consequently the extended period and mandatory equal penalty are not invocable. 4. I have considered the contentions of both sides. The definition of input given in Rule 2(k) of Cenvat Credit Rules is reproduced below : "Period prior to 7.7.2009; Rule 2(k) o....
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....2(k) as under: "In the CENVAT Credit Rules, 204 (hereinafter referred to as the said rules) in rule 2 in clause (k), in explanation 2 after the words "factory of the manufacturer", the following shall be inserted namely:- "but shall not include cement, angles, channels, Centrally Twisted Deform bar construction of factory shed, building or laying of foundation or making of structures for support of capital goods." Period 1.4.2011 onwards: Notification No. 3/2011-CE(NT) dated 1.3.2011 effective from 1.4.2011 amended the definition of inputs as under: (k) "Input" means (i) all goods used in the factory by the manufacturer of the final product; or (ii) any goods incl....
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....ncluded in the price of the final product and is not charged separately from the customer. " The respondent has admitted that panels and doors were used to make cabins where medicines were manufactured. The penals were fixed from ground to ceiling to make cabins and the doors were installed therein to enable persons to go in and out of them. From this admitted use of the impugned goods, it is evident that the panels and doors constituted fixed structure of the factory namely cabins in side of which goods were manufactured. Thus these goods were not used in or in relation to the manufacture of pharmaceuticals and were therefore during the rele....
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.... the respondent cannot be held guilty of suppression on the ground that it had not listed the goods on which credit was taken in the monthly return. No provision of law has been brought to our notice by ld. DR which requires the respondent to give list of goods on which credit is taken. The judgement in the case Tigrania Metal & Steel Industries P. Ltd. (supra) cited by ld. DR is clearly distinguishable because in that case the assessee had changed its stand and contentions. In the case of Rathi Steel & Power Ltd. (supra) cited by ld. DR the goods involved were steel items for supporting structures of capital goods and therefore did not leave any scope for ambiguity regarding inadmissibility of credit in relation thereto. In this regard, I ....